How to Claim 1% TDS Refund under Section 194S in India (Step-by-Step ITR Guide)

1% TDS Refund Under Section 194S: Full Guide

If you trade on Indian Crypto Exchanges (CoinDCX, Mudrex, WazirX), then 1% TDS is deducted on your sell orders. But many traders do not know that this 1% TDS can be claimed back through an Income Tax Refund (ITR)!

In this article, we will understand step-by-step how to view 194S TDS from Form 26AS and claim a refund by filing ITR-2.

🧮 Quick Check: To check TDS on your total trading turnover, try the Crypto Tax Calculator.

Who can claim 1% TDS Refund?

1. Total Income is less than Exemption Limit: If your total annual taxable income is less than ₹2,50,000 (Old Tax Regime) or ₹3,00,000 (New Tax Regime).
2. Overall Loss in Crypto Trading: If your overall profit for the financial year remains zero or results in a loss.

Step-by-Step Process to Claim TDS Refund

Step 1: Download Form 26AS / AIS

1. Log in to the Income Tax e-Filing portal (incometax.gov.in).
2. Click on e-File -> View Form 26AS.
3. Verify the TDS stated under Section 194S.

Step 2: Fill Data in Schedule VDA

Choose the ITR-2 Form and enter the buy/sell dates and the cost of acquisition in the Schedule VDA section.

⚖️ Exchange Comparison: To find out which exchange provides automated TDS reports at the lowest fee, visit the Crypto Exchange Compare Tool.

Summary Table: TDS Refund Conditions

Frequently Asked Questions (FAQs)

Q. How much time does it take for the TDS refund to be credited?

Refunds are credited to your verified bank account within 15 to 45 days of successfully verifying your ITR.

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🧮 Interactive Tools: Try our free Crypto Tax Calculator and Crypto SIP Calculator for your portfolio calculation and tax estimation.

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🧮 Interactive Tools: Try our free Crypto Tax Calculator and Crypto SIP Calculator for your portfolio calculation and tax estimation.